It has long been argued that the anticipations of some future event will impact current consumption and well-being in … model, by assuming that in addition to his own current consumption, an agentś current utility depends upon a reference … consumption level that is based on expected future consumption. Two alternative specifications of the anticipated future …

It has long been argued that the anticipations of some future event will impact current consumption and well-being in … model, by assuming that in addition to his own current consumption, an agent’s current utility depends upon a reference … consumption level that is based on expected future consumption. Two alternative specifications of the anticipated future …

This paper presents a laboratory experiment that directly tests the theoretical predictions of consumption choices … under rational inattention. Subjects are asked to select consumption when income is random. They can optimally decide to … of the theory: 1) Subjects optimally make stochastic consumption choices; 2) They respond to incentives and changes in …

business closures preclude regional relocation of offline consumption. …

market and shape consumption. We show that the sales of affected products drop by an average of 5 - 10%, comparing with that … product-level evidence on the financial materiality of ESG, via the household consumption channel …

proposed. These expectation adjustments generate highly heterogenous consumption responses to income windfalls: many households … previous explanations for these effects, including consumption adjustment cost and liquidity constraints. At the aggregate … level, consumption is less sensitive to expansionary policies during recessions and its excess smoothness varies …